مجلة البشائر الاقتصادية
Volume 12, Numéro 2, Pages 297-314
2026-09-01

Factors Attracting Foreign Direct Investment Under Digital Transformation In Arab Countries - A Synthesis Of Recent Econometric Evidence And International Reports

Authors : Benlagra Imane . Belhadj Faradji .

Abstract

This study investigates digital transformation as a sovereign benchmark for attracting Foreign Direct Investment in the Arab region, focusing on the shift from traditional determinants to digital locational advantages. The research problem examines the extent to which digital maturity catalyzes capital inflows amidst a regional digital divide. The objective is to evaluate current trends and provide a policy roadmap for economic diversification. A descriptive-analytical methodology was employed, involving the evaluation of data and statistical information collected during the period (2024–2026) from several international reports (International Telecommunication Union, United Nations Development Program) and the analysis of modern standard economic models. Key tools include benchmarking and concentration analysis. Results indicate that high-quality e-government services significantly reduce transaction costs, attracting 80% of regional FDI to digitally mature states. However, a "digital paradox" exists where quantitative mobile penetration alone fails to incentivize productive investment. Strategic focus must shift to qualitative, production-oriented digital infrastructure.

Keywords

FDI Attractiveness ; Digital Transformation ; Arab Region ; E-government Maturity ; ICT Infrastructure